Data from Bybt, a cryptocurrency futures trading platform, to reveal that Grayscale’s XRP holdings declined more than 9.18 million on December 29, bringing the total position to XRP 26.45 million, worth $ 5.77 million at the time of writing.
On the same day, Grayscale reportedly liquidated more than 9.74 million Stellar Lumens or XLM, bringing its total holdings to 9.19 million XLM, or $ 1.27 million at current prices.
Grayscale’s assets under management are currently $ 19.26 billion, with Bitcoin (BTC) which make up 87% of the total.
Grayscale’s apparent sale of XRP came a week after the U.S. Securities and Exchange Commission, or SEC, filed suit against Ripple Labs. The news sparked a wave of deletion from major stock markets, including Coinbase and Bittrexas the price of XRP plummeted by 60%.
Ripple has vowed to fight back against the SEC charges and has urged market participants not to draw any conclusions about the alleged security status of XRP until they hear the side of the story.
With all the regulatory oversight surrounding Ripple, it’s not hard to see why Grayscale may be moving away from the cryptocurrency. However, it is not entirely clear why the fund manager reduced its exposure to XLM at the same time.
The moves may be a temporary redistribution strategy, as recent data shows show that Grayscale has actually increased its exposure to XRP and XLM after their recent price drops.
Stellar was co-founded by Jed McCaleb, a software developer who was part of Ripple’s founding team before leaving the project in 2014. McCaleb’s public XRP wallet has been since December 9 detained more than 251 million XRP. He has Reportedly sold hundreds of millions of dollars worth of XRP since early 2016.
Grayscale and Stellar did not immediately respond to requests for comment.